Blackrock faces shareholder proposal on Business Roundtable commitments

BlackRock, the world’s largest asset manager, is being called upon in a shareholder proposal to report on how it plans to “fully implement” the recent ‘Statement on the Purpose of a Corporation’ put out by US trade group the Business Roundtable, which was signed by Blackrock’s Chairman and CEO Larry Fink. The resolution was filed by last Friday by As You Sow, the US-based shareholder advocacy group. In its August statement, the Business Roundtable (BRT) appeared to break with the traditional shareholder primacy model of capitalism – famously attributed to Milton Friedman – towards a more stakeholder-centric view that holds employees, customers, supply chain, and communities within a company's sphere on a more even standing with shareholders. “Shareholders are ready to put these words into action for the benefit of all” – Andrew Behar, As You Sow. It was signed by 181 US CEOs, including JP Morgan’s Jamie Dimon, Vanguard’s Mortimer Buckley, and Exxon’s Darren Woods. Read Full Article - Responsible Investor, December 17, 2019